Which of the following is a criticism made of qualitative forecasts?
A) They become the only possible forecast when past data are either not available or are misleading.
B) They provide no guidance on the likely effects of changes in explanatory variables.
C) They are prone to biases such as optimism and overconfidence.
D) They are difficult to document.

Question

Quizplus · Accepted Answer

Qualitative forecasts can be influenced by biases such as optimism or overconfidence, and this can result in inaccurate predictions. The other options do not necessarily represent criticisms of qualitative forecasts. Option A describes a situation where qualitative forecasts would be necessary, option B is a limitation of qualitative forecasting compared to quantitative forecasting, and option D is not necessarily a criticism but rather a challenge in documenting and verifying qualitative forecasts.

Which of the Following Is a Criticism Made of Qualitative